Weakened greenback boosts dollar

 

dollarThe Australian dollar has bounced back above 93 US cents after soft US retail sales figures weakened the greenback.

At 0700 AEST on Thursday, the local currency was trading at 93.04 US cents, up from 92.95 cents on Wednesday.

The Australian dollar got a boost after US retail sales were virtually unchanged in July from June and, excluding the automobile sector, edged up just 0.1 per cent, official figures showed.

“(The Australian dollar) benefited from the weaker US retail sales report, stronger Australian consumer confidence and improvement in risk appetite,” said BK Asset Management managing director Kathy Lien.

The currency started trending higher on Wednesday following the release of encouraging consumer confidence figures, suggesting worries about the tough federal budget were wearing off.

The Westpac Melbourne Institute Index of Consumer Sentiment rose by 3.8 per cent in August to 98.5 points, after hitting a two-year low in May.

AAP

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